JewelWay, In Reply
By Rabbi Eli Teitelbaum
I've received some very nasty phone calls recently from people (obviously into JewelWay) who are quite upset at my strong condemnation of JewelWay and even threatened me in order to get me to retract my statement. "How dare I state my opinion when doing so may cause hundreds of JewelWay representatives to lose their livelihoods," they declare acrimoniously. "Who gave me the right to voice my opinion when it will cause such great damage" they want to know? Amongst their many claims they also repeat their myth that either a) JewelWay has no saturation point or b) that it will first happen in a few hundred years, so why worry about it now? In the meantime Jews are making lots of money and putting bread on the table so what right do I have to blow the whistle and spoil the fun. I am taking away the livelihood of hundreds or even thousands of families that depend on this income. So why don't I just keep my mouth shut (they actually mean my pen or computer) and go to some more worthwhile and important subject? Others have even spread false rumors that I am uneducated and simply don't know how JewelWay works and therefore have no right to express any opinion. Others have gotten even more brazen and have been spreading rumors that I've been shown a presentation and have now changed my mind and agree that "It's the greatest new marketing scheme that's been devised since the times of Mes'ushelach and it's the true wave of the future". What utter nonsense! What they are really afraid of, is that I know too much! That is probably why they have asked all their representatives not to discuss this topic with me since they realize that the truth may prevail. I challenge them to a public debate on this topic, anytime and anywhere!
If everyone in this business would turn out to be a winner and there would be no losers, then I would certainly retract my strong opposition and would even join myself. But when they surely must know (or should know) that their earnings are coming out of other people's pockets, then it's time to speak out and tell people where all this money will eventually be coming from. It's not coming out of thin air! It's going to be coming from the hard earned money of thousands of people that are eventually going to be the losers in this game.
MLM's (Multi Level Marketing) are nothing new to the American scene and JewelWay didn't discover anything that wasn't known before. All it did was add some interesting twists to an age old pyramid scheme All the logic that applies to all pyramid schemes applies to this one as well despite their insistence that they are "unique" and different than all the rest. Their denial to call it a pyramid is nothing but an outright lie used to cover up their true colors. After all, the word pyramid smells bad to lots of people that have been entrapped by them before. While some pyramids like the famous "Airplane" is illegal, there are many like JewelWay that are structured to be perfectly legal. But that doesn't make them ethical or moral. The Torahs laws far surpass legal requirements. A business that will inevitably cause many others to lose their investment and therefore is built on misrepresentation is not a business for any Jew (nor for that matter anyone else) to be in. In my clarification of MLM's (which I provide free of charge to those who call me at 718-633-1909) I have shown mathematically that for every winner there will eventually be many more losers. This has been proven over and over again. Math doesn't lie. Anyone that will take a look on page 5 of the JewelWay manual and continue their own mathematical progression will see that at their own given rate, (whereby everyone just cons one person per month), their pyramid will saturate within less than three years. To prove this fact, all one has to do is follow their very own calculations for two more years and take a look at the astronomical numbers you are dealing with. No wonder that the company only made the calculations for the first year. Had they continued doing so for only two more years, then even a fool would realize that the whole deck of cards would come tumbling down. Note: If you don't know how to make this simple calculation, I've made it for you. (See appendix #1)
Anyone with any business sense also knows quite well that no product in the world can have an unlimited amount of distributors with all of them still making money. Everyone knows that as soon as there are too many stores of the same kind within the same neighborhood, then some of them will have to close down. To build a business that works on the premise that everyone can be a distributor for the very same products is either sheer foolishness, a gross misrepresentation or perhaps outright fraud.
Yet if this is all so simple and clear, then why do people fall for this nonsense? The answer is that greed for money can blind even the intelligent!
If JewelWay truly discovered a new way for everyone to make money, then why aren't all other companies copying their sales scheme and getting into it as well? After all, anyone can easily imitate their simple MLM structure and play the same game? JewelWay is not a manufacturer, has no patent on their product, and buys its goods from others; something anyone else can easily do. Why go into the middle of the pyramid when you can start your very own and get in on the very top and make the real millions? "You can't be bothered to start your own you say?" Then hire anyone that's good with a computer and he'll be glad to run it for you at the proper price, while you can relax someplace in Honolulu! We all know that as soon as anyone discovers a good business that's making a gold mine, there are instantly a hundred imitators and followers. One wonders then, why all other companies don't jump onto the bandwagon and follow their lead? Unless they may realize that this is not the proper way to do business!
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